- Summary:
- Despite the ongoing political crisis between U.S & Iran, Gold price secured a record high on 8th January at $1611.95. Can the bulls retain strength?
The Gold price started its bullish rally after hitting the critical support at $1287.02, 24th May 2019. The bullish rally was capped by the resistance at $1611.95. Helped by the political crisis between U.S and Iran, Gold price managed to secure a record high on 8th January at $1611.95. However, the price of precious yellow metal sharply dropped. Currently, the Gold price is testing the support at $1559.25. If this support holds, the precious yellow metal might prepare for another rally. Breaking above the high of 8 January might result in an extended bullish rally in Gold price.
On the downside, a break below the support at $1559.25 might push the price lower towards the next support at $1524.54. We might see some ranging market at that level. A daily closing of the price below that level might target the critical support at $1449.98. This level might refuel the gold bulls since we have plenty of supportive candles. Breaking below that level might result in a deeper correction in the price of gold. However, the recent growth in the U.S economy is slowed to a certain extent. So, geopolitical issues need to be intensified before you see such extended correction. Considering all the parameters, bearish tone stills favors the Gold price.